WOW STORY OF THE DAY On Cloud Nine Again: How Swiss Precision Helped On Running Bounce Back from the Brink

On, the Swiss-born running phenomenon, emerged from the Alps in 2010 with a vision to revolutionize the sensation of running. Their shoes, engineered for cushioned landings and explosive take-offs, quickly became a sensation from Olympic tracks to city pavements worldwide. Yet, even as On sprinted to a $10 billion valuation and global stardom, it faced its toughest test with a dramatic downturn. What happened next is a masterclass in brand resurgence.

 

Rise to the Top

• Founded by Olivier Bernhard, Caspar Coppetti, and David Allemann, On launched in Zurich with its signature CloudTec cushioning, offering runners the experience of “running on clouds” using innovative, hollowed-out sole elements.

• On’s early prototype won the ISPO BrandNew Award within months of founding, triggering a rapid global expansion. The shoes quickly attracted top athletes, celebrities, and everyday runners thanks to cutting-edge tech, Swiss engineering, and stylish design.

• Strategic moves included a focus on specialty retail channels and forging credibility among core running enthusiasts before expanding to mainstream wholesale and direct-to-consumer channels.

 

The Brutal Dip

• Despite rocketing to a multi-billion dollar valuation, On encountered a sharp market dip amid global headwinds and intensified competition, leading to a significant decline in growth and market cap in 2022.

• The dip tested On’s brand loyalty, exposing vulnerabilities in overexpansion and market volatility.

 

Brand Mastery: The Comeback

• On doubled down on product innovation, launching new models like the Cloudboom for the 2024 Olympic Games and pioneering sustainable features with circularity programs and trade-in platforms.

• Their collaboration with brand ambassador Roger Federer fueled further buzz, while the brand’s identity—rooted in Swiss precision and adventure—remained unwavering.

• On refined its distribution strategy, limiting wholesale expansion to avoid overstock and focusing on in-store education, premium experiences, and direct customer engagement.

• By 2025, On rebounded, growing revenues to new highs, retaking shelf space from established giants, and reigniting excitement with every launch.

 

Sources: On Running official site, Companies Market Cap, JD Sports